Back to top

Analyst Blog

Zacks Investment Research upgraded Ultra Clean Holdings Inc. (UCTT - Snapshot Report) to a Zacks Rank #1 (Strong Buy) on Mar 11, 2014. Going by the Zacks model, the companies holding a Zacks Rank #1 have strong chances of performing better than the broader market.

Why the Upgrade?

Ultra Clean Holdings reported impressive fourth-quarter 2013 results on Feb 18, 2014. Since then, shares of the company have spiraled up 20.3%. Earnings per share in the quarter were 26 cents, surpassing the Zacks Consensus Estimate of 23 cents 13.0%.

Revenues in the quarter increased 40.2% year over year to $126.0 million. Of total revenue, roughly 93.7% was Semiconductor revenue. Revenue generated from international operations was 29.1%. Gross margin increased 430 basis points year over year to 17.1%.      

For first-quarter 2014, Ultra Clean Holdings anticipates revenues to be within the $135–$140 million range and adjusted earnings per share to be within 28–31 cents. At mid-points, the revenue guidance reflects a sequential increase of 9.1% while the earnings guidance is a 13.5% increase over the previous quarter.

Fourth-quarter 2013 results triggered upward revisions in earnings estimates for Ultra Clean Holdings. In the last 30 days, the Zacks Consensus Estimate has increased 33.8% to $1.07 for 2014. The estimate also reflects year-over-year growth of 102.4%. Earnings growth for the next 5 years is predicted to be 11.5%.

Earnings growth rates as well as a positive average earnings surprise of 11.8% have made us optimistic about Ultra Clean Holdings’ performance in the coming quarters.
 
Other Stocks to Consider

Ultra Clean Holdings is a $39.9 million company operating in the semiconductor industry. Other stocks worth considering in the industry include Tessera Technologies Inc. (TSRA - Analyst Report), Canadian Solar Inc. (CSIQ - Analyst Report) and SolarCity Corp. (SCTY - Snapshot Report). While Tessera Technologies and Canadian Solar carry a Zacks Rank #1 (Strong Buy), SolarCity Corporation holds a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%